1. Market Wrap: Bitcoin Sustains ‘Musk Jump’ as Crypto Sentiment Improves
Bitcoin tests $40K following positive comments from Tesla’s CEO Elon Musk and hedge fund manager Paul Tudor Jones.
A string of positive news kept bitcoin buyers active on Monday as analysts searched for signs of a short-term bottom. The world’s largest cryptocurrency by market capitalization is up about 20% over the past e seven days and is testing the $40,000 price level for the first time in two weeks.
A number of signals “all firmly point to an undervalued bitcoin at current prices,” wrote Alexandra Clark, sales trader at the U.K.-based digital asset broker GlobalBlock, in an email to CoinDesk.
Buyers stepped in after Tesla CEO Elon Musk tweeted on Sunday the electric car maker would allow bitcoin transactions again “when there’s confirmation of reasonable (50%) clean energy usage by miners with a positive future trend.”
“Although many analysts are still on the fence when it comes to determining whether the digital asset is ready to continue its uptrend,” Clark wrote, “what we do know is that Musk is responsible.”
The tweet triggered a near-6% bounce in BTC, which had been trading in a tight trading range between $30,000 and $40,000 over the past month.
2. Bitcoin Fund Outflows Slow but Investors Start Exiting Ether Funds
The amount of money leaving was significantly less than the previous, record week of $141 million.
Money being pulled out of digital-asset investment funds slowed somewhat last week. However, while net redemptions from bitcoin-focused funds shrank, some investors seem to be souring on ether.
Overall, digital-asset funds experienced net outflows of $21 million during the week ending June 11, down from $94 million pulled out of funds the prior week, according to a Monday report by CoinShares.
The decline in outflows might be an early sign of bearishness has peaked.
Investors have been pulling money from bitcoin funds in recent weeks as the price of the largest cryptocurrency by market value traded below $40,000, down from the all-time high near $65,000 reached in April.
3. Bitcoin and Ether Price Indicators Support Near-Term ‘Relief Rally’
Bitcoin’s weekly stochastic oscillator has turned up from oversold or below -20 levels, a positive sign for the cryptocurrency.
Price charts for bitcoin and ether might be turning bullish after a month of market stagnation, potentially offering respite in the coming weeks, a new analysis shows.
Bitcoin’s weekly stochastic oscillator has turned up from an oversold level or below 20, signaling the possibility of a near-term “relief rally,” according to Katie Stockton, founder and managing partner of Fairlead Strategies.
Seasoned traders use the oscillator in conjunction with other indicators to gauge oversold and overbought conditions, which act as triggers for long and short trade entries. A reading below 20 implies oversold conditions, while an above-80 print indicates an overbought market.
In bitcoin’s case, the weekly stochastic’s positive turnaround is accompanied by a buy signal on the daily and weekly chart DeMark Indicators, as noted by Stockton in a weekly research note. According to Investopedia, DeMark indicators compare the most recent maximum and minimum prices to the previous period’s equivalent price to measure the demand of the underlying asset.
Thus, bitcoin appears poised for a more substantial relief rally — a price bounce due to seller exhaustion. The cryptocurrency is currently trading at 2.5-week highs above $40,000, representing an 8% gain on a 24-hour basis.
According to Stockton, an initial resistance for bitcoin is near $47,000, which, if breached, would open the doors for further gains. However, Pankaj Balani, CEO of Delta Exchange, expects fresh sellers to step in above $45,000.
Ether, the native token of Ethereum’s blockchain, could also benefit from a shift in the price-chart indicators.
“The daily and weekly stochastics have turned up, supporting a near-term relief rally and test of initial resistance near $3,000,” Stockton said.
The second-largest cryptocurrency has faced multiple rejections in the range of $2,800-$3,000 since late May.
4. Coinbase Adds Polkadot Trading to Pro Platform
Trading will begin on or after 9 a.m. PT Wednesday.
Coinbase’s professional trading platform has added DOT, the native currency of the Polkadot blockchain, the exchange said in a blog post Monday.
As of Monday, the token is available to transfer into Coinbase Pro accounts. Trading will begin on or after 9 a.m. PT Wednesday.
The exchange typically adds cryptocurrencies to its retail platform a few weeks after first listing them on the professional version, although that turned out not to be the case when it added dogecoin. Coinbase Pro currently supports 50 cryptocurrencies.
Trading pairs to be supported include DOT-USD, DOT-BTC, DOT-EUR, DOT-GBP and DOT-USDT.
5. Central American Development Bank Forms Technical Group for El Salvador Bitcoin Bill
The government requested a consultancy from the Central American Bank for Economic Integration (CABEI).
A multinational development bank will form a technical advisory group to help El Salvador as it implements a law recognizing bitcoin as legal tender.
The government of El Salvador resorted to the Central American Bank for Economic Integration (CABEI) to assist in the process of bitcoin implementation in the country, CABEI’s president, Dante Mossi, confirmed in a press conference on Monday
“During these days” a technical group will be formed involving members of CABEI, the Salvadoran Ministry of Finance and the Central Reserve Bank, Mossi said.
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June 15, 2021